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How are commissions and fees applied to my trading account?
How are commissions and fees applied to my trading account?
R
Written by Raen Team
Updated over 2 months ago

We apply a commission of .70 cents per side per contract (approximately $1.40 round turn), regardless of whether you're trading micro or full-sized contracts. These commissions are processed during the exchange reset period, similar to how traditional brokers handle fees.

Here's what this means for your daily totals: If you've had an active trading day, your balance will adjust overnight when these commissions are applied. This adjustment can work both ways:

Profitable Scenario: If you end the day up $1,900 but traded numerous contracts, your following day's starting balance will reflect these commission deductions, potentially reducing your apparent profits.

Loss Scenario - Important Risk Management Note: Be particularly mindful when your daily PnL approaches the daily loss limit. For instance, if you're showing a loss of $1,900 and have traded a significant number of contracts, the addition of commissions could push you beyond the $2,000 daily loss limit, rendering your account ineligible.

Strategic Consideration: Always factor your expected commission costs into your daily risk management calculations. The number of contracts you trade directly impacts your commission exposure, which in turn affects your true P&L position relative to our risk parameters.

This commission structure mirrors real-world trading conditions, where transaction costs are an integral part of your overall strategy and risk management approach.

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